Since the initial drafting of the Alternative Investment Managers Directive (‘AIFMD’) in 2009, many fund managers have expressed concern about its impact on the sustainability of funds and management companies, both within the European Union (‘EU’) and further afield.

Fund service provider Abacus, recently co-hosted an event at the Hotel de la Paix, Geneva Switzerland, which was well attended by asset managers, law firms and other members of the financial service advisory community. The briefing discussed the implications for and impact of the Directive on Swiss and other non-EU managers of Collective Investment Schemes (‘CIS’).

Paul Kneen, Managing Director of Abacus’ Funds Group, spoke at the event and explained, “Recent changes by the EU to the regulation of how alternative investment fund managers distribute their funds and operate their businesses have been received throughout Europe with mixed reactions. Switzerland is under no obligation to implement the AIFMD, however failure to do so would mean Switzerland would not be able to enter into the required co-operation agreements with EU regulators once the AIFMD comes into effect in June 2013. This would prevent Swiss resident managers from continuing to sell their products in the EU.

In light of the Directive, Swiss authorities have amended the Collective Investment Scheme Act (‘CISA’) to bring the regulation of managers of unregulated funds in Switzerland in line with international developments. However, when the AIFMD is introduced, only the 27 EU members will be permitted to utilise the EU marketing passport for hedge-fund managers to market their funds to all member states of the EU through a single authorisation, similar to that of the UCITS (Undertakings for Collective Investment in Transferable Securities) directive. Non-EU countries will not be able to apply for the passport until 2015. As one of the 27 member countries, Malta is thereby able to assist Swiss investment advisory and management firms to establish a cost-efficient presence in Malta whilst retaining access to EU markets.”